United Power likes to show its colors during the holiday season. In December, United Power featured its festive, hand-built holiday float, “Christmas Time is Here” in parades in Hudson and Brighton, both communities served by the cooperative. 

Employees worked together to build and decorate a 20-foot trailer with approximately 6,000 lights, more than a dozen holiday-themed props and plenty of spirit to light up the streets. 

The float debuted in Hudson’s holiday parade, hauled by one of United Power’s newly wrapped work trucks, which was wrapped in colorful LED lights. In Brighton, the cooperative debuted its restored 1939 Chevrolet pickup, painted a bright candy red, at the city’s 23rd annual Parade of Lights, celebrating United Power’s 80-year history connecting its members. 

United Power was also proud to roll it’s safety demo truck in Keenesburg’s inaugural holiday parade, Christmas in Keenesburg. 
 

Today, United Power enjoys a seat as one of the most progressive cooperatives across the country. Over the past 80 years, United Power has reached milestones few other cooperatives have, but not without first overcoming a few seasons of turbulence. This is the first in a three part series chronicling the cooperative’s history leading up to its 80th Annual Meeting this April. 

In June 1938, shortly after Franklin D. Roosevelt created the Rural Electric Administration, a group of local farmers in the counties northeast of Denver met to discuss the possibility of forming a cooperative to meet their needs. In October of that year, Union Rural Electric Association was born. The cooperative began construction on lines that would first serve members in late January of 1940. 

Though the outbreak of WWII paused development, growth continued through the 1950s. During that time, Union REA entered a competitive territory battle with the state’s largest public utility, Public Service Company of Colorado (now Xcel Energy), which had begun to see the areas lucrative potential. The battle over service territory would continue throughout the 1980s.

Legislation passed in 1961 finally recognized Union REA, and all other utilities in the state, as full-fledged public utilities with the right to serve certified territories, temporarily halting PSCo’s encroachment on the cooperative’s territory. However, Union REA agreed to allow PSCo to serve some of the fastest growing towns in its territory following a negotiation in 1964. 

In the 1970s, PSCo broke faith with the cooperative as growth exploded in the area during that time. The public utility began aggressively claiming territory beyond what Union REA felt was outlined in the agreement. During that time, Union lost nearly 2000 accounts, and many more were considered “at-risk.” In 1987, the Public Utilities Commission declared the agreement invalid in favor of the cooperative, triggering PSCo to initiate a takeover attempt later that year.

Now more than 10,000 members strong, the cooperative’s healthy growth, combined with the proximity to the Denver metro area, made Union an attractive takeover target. PSCo offered to buy out the cooperative for $62.5 million and compensate members with a $500 cash payout to replace lost capital credits. Union REA leadership felt the offer was disingenuous, and communicated directly with membership until a vote on Saturday, August 22, 1987. Union members ultimately voted against the takeover, placing their faith in the promise of the cooperative future. 
 

In several newsletters in 2018, we’ve discussed the new rate structure and a rate increase of 1.5-2% that goes into effect on January 1, 2019.  It’s important to understand that while the rate change is effective for energy usage beginning on January 1, 2019, members won’t see the changes reflected on their bills until their February statements. 

The new rate structure, which breaks apart the energy and demand components into separate charges, allows us to more fairly charge members for both their energy consumption and their impact on the delivery grid. In the past these two costs were recovered through a blended rate, but with more accurate metering we can now utilize each members’ demand to correctly allocate those costs. 

“From a rate standpoint, we have the right information to correctly charge our members for their impact on the grid and the energy they use,” stated Dean Hubbuck, Director of Power Supply and Rates. “We have put together a rate that should put the power to control electric costs into the hands of our members.”

What is Demand?

Demand is how much capacity you need at any one time to serve the needs of your home or business during the billing period. United Power measures demand in 15-minute intervals, and members will be billed for their single highest 15-minute interval of consumption over the billing period. It is measured in kilowatts (kW) and your highest interval can occur at any time of the day or night. 

How Much Will the Demand Charge Cost Me?

Demand has been reported on billing statements since August of 2018, but without a corresponding dollar amount attached to the line item.  In 2019 members will be charged $1 per kW for the highest 15-minute interval of consumption over the billing period. So, if your demand is 6.97 kW, you would see a charge of $6.97 for this line item.

To offset the demand charge, the 2019 rates also include a corresponding reduction the cost of energy.  Now members can affect their electric bill in two different ways – by staggering use of appliances to reduce demand or by simply using less energy. So, while the rate change increases rates from 1.5-2% overall, members will have more power to control their bill than in the past.

What Affects my Demand?

Major appliances used for heating and cooling, cooking and laundry have the greatest impact on your energy use and your demand. The more appliances you operate at once, the higher your capacity needs are, which will result in a higher demand charge on your bill. Depending on your home, family size and appliances, your demand will vary, and your highest demand season may be different from other members.

How Can I Manage my Demand? 

Staggering the use of major appliances will be the easiest way to manage your electric bill under the new rate structure. When you consistently stagger the use of major appliances so they don’t run at the same time, you can keep your demand low. Make it easier by utilizing technology that helps you offset energy use like timers, delay start settings, mobile apps, and programmable thermostats. In the graph below, the red line represents demand.

Here are some helpful tips to manage your demand:

• Run the dishwasher after you’re done cooking dinner. Even better, use the delay start feature so your dishwasher runs later at night while everyone is in bed.
• Start your clothes washer before you go to bed in the evening, and then run the dryer after everyone has finished cooking breakfast the following morning.
• Grill outside or use small cooking appliances if the air conditioning is running. (Bonus: you won’t overheat your kitchen on a hot day!)
• Set your electric vehicle charger to run after you’ve you turned off other appliances for the day.

The changes to the rates are also complemented by a new Smart Choice Rate that takes the demand concept a step further. This new rate provides two different demand charges, and a much lower energy charge than with any other rate. The higher demand charges and lower energy charges may work well for a member who is willing to shift their demand throughout the day and night, and actively monitor their use. 

How Can I Learn More About My Demand & Energy Usage?

In the past year United Power has rolled out access to the Power Portal, a way for members to look at their energy use in near real time. The portal provides information about when the member is using power in 15-minute increments as early as the previous day.  This is a powerful tool to help members manage their energy use and see how they are impacting the power grid. Used in tandem with the demand rates, the Power Portal will provide the information members need to make good energy choices.  As always, members can call our Energy Management team if they need more information about how they use power, and to learn more about how they can affect their power bills.

To View Demand in the Power Portal:

• Click “My Consumption Data” and then select “Current Month” and “Billing Month.” 
• Turn on the orange Demand line using the controls below the weather data.
• The orange line is your Demand, and the orange diamond is your highest Demand to date, which occurred on December 3rd in this example. 
• Click on that day to view each 15-minute interval to zero in on the exact time your demand was reached.
• From the Daily View, you can hover over the peak demand (orange diamond) and it will give you the interval (14:15 or 2:15 p.m.) and the kW reached (7.064 kW).

You will be billed on your single highest 15-minute interval each month at $1 per kW. In this scenario, the demand charge (to date) would be $1/per kW x 7.064 kW = $7.06. If demand exceeds this amount before the end of the billing cycle, you would be billed at that higher amount. 

New Rates will be Effective Jan. 1, 2019

United Power’s Board of Directors approved a rate change for 2019 that separates energy and demand charges and includes a modest 1.5-2% rate increase for most members. The new rates will be effective with January 1, 2019 electric use, so members will see these changes reflected on their February 2019 bills. 

Since the cooperative began using the advanced metering infrastructure several years ago, we are now able to better measure every member’s impact on the electric system. The new rates break apart the blended rate members have paid in the past, incorporating both an energy charge and a demand charge. 

The new rates allow United Power to more fairly charge members for both their energy consumption and their impact on the delivery grid. 

“We always weigh multiple factors when considering a rate change,” stated Dean Hubbuck, Director of Power Supply and Rates. “The board takes several months to really evaluate our extensive cost of service study, and then considers our budget when setting rates for the coming year.  We are pleased that the rate increase is small, and that members will have more ways to manage their energy bill.”

There have been multiple articles in previous issues of the United Newsline talking about how demand is determined, and how to reduce it. Additionally, the actual demand was added to most bills earlier this year with a zero amount, so members could begin to see how their actions affect their demand.  

The new rate structure will assign a one-dollar per kW charge to the demand component, and members will see a corresponding drop in the cost of the energy. Now members can affect their electric bill in two different ways – reducing their demand by staggering their use of appliances and by simply using less energy. So, while rates are increasing next year, the change in the rate structure gives members more power to control their bill than in the past.

The changes to the rates affect all existing residential, time of use and small commercial rates. The rate change also includes the addition of a new Smart Choice Rate that takes the demand concept a step further. 

This new Smart Choice Rate provides two different peak demand charges, and a much lower energy charge than with any other rate. The higher demand charges and lower energy charges may work well for a member who is willing to shift their demand throughout the day and night, and actively monitor their use. 

In the past year United Power has rolled out access to the Power Portal, a way for members to look at their energy use in near real time (Read more about the Power Portal). The portal provides information about how the member is using power in 15-minute increments.  This is a powerful tool to help members manage their energy use and see how they are impacting the power grid. Used in tandem with the demand rates, the Power Portal will provide the information members need to make good energy choices.

“By using the Power Portal and monitoring how they use appliances in their homes, members will have a greater ability to manage their energy costs than at any time in the past,” stated Hubbuck. “We think we have a new rate structure that really meets the needs of our members – whether they want to take an active role in keeping their costs down, or if they simply want a fair rate they don’t have to think about.”

In October, lights went on for the first time in two villages nestled deep in the jungles of northwest Guatemala. After weeks of grueling manual labor in adverse conditions far from home, line crews from Oklahoma and Colorado completed work on a project to provide the villages of Pie del Cerro and Tierra Blanca Salinas the gift of electricity. 

Between long days caused by the lack of major equipment and staving off dehydration brought on by dense jungle humidity, crews often returned to their rooms late in the evening exhausted – ready to do it again the next day. 

“Nothing came easy,” United Power lineman Kelly Snow said. “We had to gut it out each and every day. But even on the worst days, everyone showed up and gave it their all. We came to accomplish something, and we did.”

Line crews were stationed in the small city of Playa Grande, located roughly 300 miles from Guatemala City. Each morning, crews loaded into trucks and traversed dirt-packed and often jarring roads to the villages they’d be powering nearly an hour away.  

Once there, work had to be completed without the use of specialized tools or mechanical equipment, and vehicles were to be used for transportation only. 

Snow, who’s experienced the worst working conditions as a lineman in Colorado’s Front Range, said it’s hard to prepare for the difficulties of working in a third world country.

“It’s like stepping back in time,” he said. “We talked to others who were on projects before us and looked at all the photos, but there are still elements of the unknown. It’s hot and humid the whole time; hard to stay hydrated.”

Despite the harsh working conditions, crews were able to complete the first half of the project in just over a week – providing power to the first of the two villages – and the whole project on time.

“I’m proud to have been a part of this project to provide power to these families and kids,” Snow said. “It gives these kids the chance to continue their studies, and maybe even opens the door for computers or cell phones one day.”

Brief reprieves gave Snow and other linemen an opportunity to spend some time building relationships with villagers, playing games with the children and exploring the nearby jungle and lakes. 

Above and beyond providing electricity, the crews were also able to gift each household with two-year water filters and each school with a laptop and wheelchair.

“The Rural Electric Association was founded on the principal of bringing electricity to rural America,” Snow said just before the project. “It’s an inspiration to be a part of that foundation and spreading it to other countries.”

As Published in the Denver Post and Longmont Times Call:  November 9^th, 2018

You are hereby notified that UNITED POWER, INC. (United) proposes to make changes to several of its rate tariff schedules to become effective for energy usage on or after January 1, 2019 (billings issued after February 1, 2019). A cost of service study was updated and indicated an increase was necessary for several rate classes. There will be a rate increase to the Residential (R1) rate class of 1.5% and a 2% increase to the Residential Time of Use (RTD1) and Irrigation (IRR2) rate classes. The Industrial Service – Substation or Transmission (ITD1, ITD2, ITD3 and ITD4) rate classes will have an increase of .7 mills per kWh. The Residential (R1), Residential Time of Use (RTD1), Small Commercial (C1), Small Commercial Time of Use (CTD1), Irrigation (IRR2) and Small Industrial Primary (SIP1) will have a demand charge of $1.00 per kW added with a reduction in the energy charge per kWh. The Residential Demand Pilot Rate (RD1) will be eliminated and a new Smart Choice rate will be established for residential service. There will be minor rate language updates for consistency to Residential (R1), Residential Time of Use (RTD1), Small Commercial (C1), Small Commercial Time of Use (CTD1), Irrigation (IRR2), Small Industrial Primary (SIP1), Large Commercial Secondary Demand (ISD1) and Large Industrial Primary Demand (IPD1) rate classes. The Rules and Regulations, Service Rules and Regulations, and the Service Connection and Line Extension Policies will be reformatted.

The present and proposed tariff provisions are available for examination at the Coal Creek Branch Office, located at 5 Gross Dam Road, Golden, Colorado; the Ft. Lupton Branch office located at 1200 Dexter Street, Ft. Lupton, Colorado; and the headquarters office located at 500 Cooperative Way, Brighton Colorado.

Anyone who desires to comment about the proposed changes shall file either an informal complaint or a formal complaint with United at 500 Cooperative Way, Brighton, Colorado 80603 at least 10 days before the proposed effective date.

An informal complaint shall be in writing and shall contain such facts and other information to adequately state the reason(s) for the complaint.  An informal complaint shall be considered by United, in regard to the proposed tariff changes, but will not require that a hearing be held.

Anyone who desires a hearing must file a specific and formal complaint to the proposed changes and a request for hearing at least 10 days before the proposed effective date.  A formal complaint shall be in writing in the form prescribed by United’s Regulations Governing Consumer Complaints and Related Matters. Upon request, a copy of said regulations is available from United.

United may hold a hearing to determine what changes will be authorized, regardless of complaints.  If proper formal complaints and request for hearings are timely filed, the Board shall schedule a hearing.  The changes ultimately authorized may or may not be the same as those proposed and may include changes different than those tariffs proposed or currently in effect.  Anyone who desires to receive notice of hearings, if any, shall make a written request therefor to United, at the above address at least 10 days before the proposed effective date.

UNITED POWER, INC
By: John D. Parker, Chief Executive Officer

Earlier this month, United Power went live with its much anticipated battery storage facility at its new west office, located on the I-25 Frontage Road south of state Highway 119. The project, developed in collaboration with ENGIE, is the largest utility battery storage facility in Colorado. 

The introduction of battery storage to United Power’s portfolio will allow the cooperative to save an expected $1 million each year in wholesale capacity charges. Energy generated from all sources on United Power’s grid will be stored during low-demand hours to be discharged during high-peak periods throughout the year. 

United Power’s primary goal for its battery storage facility is peak shaving, but it also better positions the cooperative to respond to future innovation and development within the energy environment. 

“Understanding storage is the next logical step in the progression of renewable generation,” said Jerry Marizza, United Power’s New Business Director. “Without the ability to store energy, renewables will have an artificial cap placed on its utilization.” 

On bright days when the sun is shining, solar fields may collect more energy than can be immediately used. Without proper storage capabilities, that excess energy is lost. Allowing the capture of both wind and solar energy produced at off-peak times when demand is low conserves energy and saves money.

“As a co-op, we have an obligation to our communities and individual members to explore these new options to meet this ever changing energy environment,” Marizza said. 

The Tesla battery system United Power and ENGIE utilized for this project is a larger version of the lithium ion battery found in Tesla’s popular electric vehicles. Through years of testing and refinement, Tesla batteries have become the industry standard in energy storage. 

The system has the capacity to store and distribute up to four megawatts of energy, or enough to power up to 700 homes simultaneously. Size and duration of the batteries used was determined during a study of United Power’s monthly load profile.

“As one of the fastest growing co-ops in Colorado, United Power wants to stay ahead of the curve when it comes to integrating new technology that can help boost reliability and keep costs down,” said John Parker, United Power CEO, during the project announcement this past year. “Energy storage will play an important role in the grid of the future, and we’re excited to be starting now.”

The new battery storage facility builds on United Power’s reputation for adopting and implementing innovative technology, such as the Sol Partners Cooperative Solar Farm – the first of its kind in Colorado – and Methane to Megawatts Project at the Erie Landfill – only the second of its kind in the state. More than just renewables, these projects also make economic sense for our members while providing reliable energy.